Why 4% Interest Still Makes You Poorer

Your savings account pays 4%. So why can you buy less with that money a year from now? In this video I follow a fictional saver named Priya through the three leaks that drain a savings balance: taxes, inflation, and the bank's own margin. Then I show a ten-second check you can run on your own account. ⏱ Chapters 0:00 Why "safe" isn't the same as "growing" 0:26 The Fed hike and the 4% headline 2:52 Leak 1: Taxes on savings interest 4:44 Leak 2: Inflation 8:33 Leak 3: The bank's margin 12:10 The ten-second real-return check 📊 Sources (so you can check the math) • BLS Consumer Price Index, August 2026 report (3.4% year over year) • Federal Reserve FOMC statement and projections, September 2026 • FDIC national average savings rate (0.38%) • IRS 2026 tax bracket and standard deduction tables Priya is a fictional example, and the numbers assume a $10,000 balance, 4% APY, the 22% federal bracket and no state tax. This video is educational and is not financial advice. Subscribe to Stickonomics for money explained with stick figures and real numbers. #savingsaccount #inflation #personalfinance